In a strategic maneuver aimed at fortifying their positions, the astute billionaire Gautam Adani-led promoter group has yet again increased their stake in two of the conglomerate’s publicly listed entities. This move comes as part of Adani’s meticulous resurgence strategy, following a series of detrimental reports that had adversely impacted the group’s standing.
Notably, the promoter group has substantially elevated its stake in the flagship Adani Enterprises, now commanding an impressive 71.93 percent share, up from the previous 69.87 percent, as reported in filings to the stock exchange.
It is worth highlighting that this is the second instance in less than a month where the promoters have augmented their holdings in Adani Enterprises, marking their unwavering commitment to nurturing new enterprises within the conglomerate. In the preceding month, their ownership had ascended from 67.65 percent to 69.87 percent.
Additionally, the promoter group has displayed their confidence in Adani Ports and Special Economic Zone Ltd, increasing their stake from 63.06 percent to 65.23 percent, as per official filings.
The acquisition of these shares is the result of calculated market transactions. Resurgent Trade and Investment Ltd secured nearly one percent of Adani Ports and Special Economic Zone Ltd through open market transactions, while another 1.2 percent was acquired by Emerging Market Investment DMCC. Notably, both of these entities are affiliated with the promoter group.
In the case of Adani Enterprises Ltd, the shares were procured by Kempas Trade and Investment Ltd and Infinite Trade and Investment Ltd. The records indicate that these stakes were acquired through open market transactions conducted between August 14 and September 8.
This substantial increase in stakes occurs in close proximity to US-based boutique investment firm GQG Partners making significant investments in Adani group firms. GQG has steadily increased its stake in Adani Ports & Special Economic Zone (APSEZ), reaching 5.03 percent through bulk deals last month.
GQG’s expanding portfolio now includes stakes in five of the ten Adani Group firms, with a noteworthy 7.73 percent stake acquired in Adani Power Ltd on August 16. This transaction followed a block deal where promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09 percent stake in Adani Power, with GQG securing a significant portion.
After this transaction, the promoter group’s holding in Adani Power diminished from 74.97 percent to 66.88 percent.
These developments come in the wake of allegations made by US short-seller Hindenburg Research in a report released on January 24. The report had accused the Adani group of accounting fraud, stock price manipulation, and improper use of tax havens, which led to a significant market downturn, erasing approximately USD 150 billion in market value at its lowest point.
Adani Group has staunchly refuted all allegations, embarking on a comeback strategy that encompasses restructuring its ambitions, divesting from acquisitions, proactively reducing debt to address cash flow concerns, and moderating expenditure on new projects.
GQG, however, has remained unfazed by these allegations and has been steadily investing in Adani firms since May. Their substantial investments, totaling Rs 38,700 crore, have been instrumental in restoring investor confidence. Additionally, Qatar Investment Authority (QIA) has invested Rs 4,100 crore in Adani Green Energy, and Bain Capital has injected Rs 1,440 crore into the group.
In conjunction with promoter stake sales, these three portfolio companies have obtained board approvals for primary issuances through share sales to investors. Adani Enterprises aims to secure Rs 12,500 crore, while Adani Transmission is targeting Rs 8,500 crore. Adani Green Energy is set to raise Rs 12,300 crore, playing a pivotal role in incubating green hydrogen projects, with Adani Green Energy focusing on its ambitious target of building 45 GW of renewable energy capacity by 2030.
This astute move by the Adani Group demonstrates their unwavering commitment to adapting and thriving in the face of challenges, solidifying their standing in the world of business.
By PTI
